Biden declares war on Lyft and Uber
The Biden administration’s Department of Labor recently released a new interpretive rule regarding whether workers are classified as employees or independent contractors. The action reverses a Trump-era rule that simplified the classification process, and was dedicated to preserving the gig economy. Employees are much more expensive than independent contractors — possibly by as much as 30 percent. This is, in part, because independent contractors are not subject to federal minimum wage or overtime regulations, among others, and are not protected by the National Labor Relations Act, meaning it is more difficult for them to unionize. This all may seem rather trivial, but the impact on both the consumer and the worker will be significant.
